IoT Means Business

According to the World Economic Forum, the IoT is part of the Fourth Industrial Revolution. A convergence of various digital technologies enables things like precision agriculture, smart factories, digital twins, fully autonomous vehicles and robotics, automated warehouses and grocery stores, and entirely new business models, which weren’t possible before the IoT existed.

Digital twins are a particularly compelling solution. These systems—which typically extract data from buildings, roadways, storage tanks, engines, manufacturing equipment, products and numerous other sources, create virtual models or “twins” of actual products, services, and systems. In this simulated space, it’s possible to explore various options and scenarios, and understand performance and possible outcomes at a far deeper level.

Plugging into a growing collection of standards, protocols and APIs, IoT systems can connect and interconnect in increasingly sophisticated ways. It’s possible to tap into broader technology platforms that intersect with AI and automation. Increasingly, vendors such as AWS, Google, Cisco, Microsoft, IBM, SAP and others offer IoT and Industrial IoT (IIoT) platforms that combine various functions and deliver plug-and-play capabilities.

These vendor platforms now include highly integrated tools for auto-provisioning, data collection, cloud and edge storage, remote device management, analytics and machine learning, policy enforcement and security. Many of these systems are highly scalable and many include templates and functions designed for specific industry verticals, such as manufacturing, healthcare, finance and transportation.

This leads to potential gains in several areas: workers safety, production uptime, product quality, regulatory compliance, operational efficiencies, physical security and much more. Together, the IoT and IIoT can deliver visibility into conditions that extend outside the enterprise.

Today, IoT platforms serve as a valuable resource for both small and larger enterprise. They reduce—and in some cases eliminate—the need to assemble an IoT framework from scratch and devote staffing and financial resources to the task of maintaining and updating a connected technology and business framework.

How Secure is IoT?

An inconvenient truth is that the IoT is not inherently secure. Because it is comprised of a mishmash of protocols, standards and vendors, any enterprise venturing into a highly connected world must take abundant precautions and enact strong safeguards. In addition, as organizations accumulate large numbers of IoT devices—sometimes reaching into the millions—the security challenges multiply.

It’s no secret that data breaches and ransomware attacks have reached epidemic proportions. During the pandemic, the problem worsened. As more and more connected devices appear, potential gaps and breakdowns grow. Making matters worse, conventional security tools don’t necessarily protect IoT devices and data.

Part of the security challenge also centers on the way IoT devices are built—and what operating system and software they use. Unfortunately, equipment vendors frequently use legacy BIOS and OS standards that are not equipped for today’s environment. Many also don’t provide regular patches and updates to address security bugs and other problems.

Already, criminals have taken over Internet connected baby monitors, commandeered smart refrigerators and television sets, and gained access to automobiles and medical devices.

Ultimately, IoT security must address three primary areas:

Authentication

Device authentication increasingly revolves around protocols, such as X.509, that verifies devices, gateways, users, services, and applications. The X.509 cryptographic standard uses self-signed or authority-signed public key certificates that validate identities over a network.

Encryption

Encryption typically encompasses the Wireless Protection Access 2 (WPA2) standard of network encryption.

Port protection

Port protection techniques revolve around disabling ports that aren’t required to operate an IoT device or ensuring that they are protected by a firewall.

Fortunately, a growing array of vendors specialize in IoT security. They are introducing more integrated and streamlined security for this highly connected business world.

Ethical and Privacy Concerns Related to IoT

There’s also a growing focus on privacy and ethics. As data becomes more connected—and interconnected—both the challenges and risks grow. The European Union’s General Data Protection Regulation (GDPR), which took effect in 2018, introduced strict rules, regulations and penalties for organizations handling data that touches European citizens.

In 2020, California introduced a new law, California Consumer Privacy Act (CCPA), which requires manufacturers to include “reasonable” security features in IoT devices. It also introduced standards for companies doing business in California, and penalties for violations and data breaches. A major violation could result in fines of US $2,500 to US $7,500 per violation as well as action from the California attorney general’s office.

The concerns don’t stop with laws and regulations, however. Privacy experts and a growing segment of the public are increasingly vocal about how facial recognition data, healthcare data and other forms of IoT data are collected and used. As a result, businesses relying on the IoT must take a close look at several key areas and tools, including:

• Data personalization
• Data de-identification, and re-identification
• Data persistence
• How IoT data is stored and retained

IoT: a Connected World is Taking Shape

Sitting on the sidelines and waiting for the IoT to mature is no longer a viable option for most organizations. The IoT and IIoT are here now, and they are valuable tools for businesses of all shapes and sizes. Industries as diverse as finance, manufacturing, agriculture, construction, energy, transportation and healthcare are witnessing enormous changes as a result of connected technologies.

Consulting firm McKinsey & Co. reports that the worldwide number of IoT-connected devices is projected to increase to 43 billion by 2023, an almost threefold increase from 2018. The firm also notes that the IoT is an increasingly critical factor in determining which companies excel and generate growth and new sources of revenues.

What’s more, sensor technology and other IoT components are becoming cheaper and far more powerful. When organizations combine these components with powerful 5G, cloud, edge and fog technologies, the power of the IoT further multiplies—and the value to organizations grows. Adding augmented reality, virtual reality, robotics and various forms of AI often unleashes new and compelling business models.

The opportunities don’t end at the four walls of the enterprise. The World Economic Forum found that 84% of existing IoT deployments address, or have the power to advance, the UN’s Sustainable Development Goals. As organizations develop and advance sustainability programs and aim for aggressive carbon reduction targets, the IoT will play a crucial role in measuring progress, identifying gaps and achieving objectives.

To be sure, the IoT is at the center of everything as businesses look to modernize and gain advantages through innovation, cost cutting, new features and services, and improved interactions with business partners and customers. The IoT is ultimately about dollars—and good business sense. Enterprises that put it to work effectively witness innovation and transformation on a scale that hasn’t been possible in the past. These enterprises achieve the full promise of digital transformation.